Categories
News

Spain opposes gas restriction proposed by Brussels

Madrid. – Third Vice President and Minister for Ecological Transition and Demographic Challenges, Teresa Ribera, has shown her opposition to the emergency gas cap proposed by the European Commission (EC), which sets a maximum price of 275 euros per megawatt. hour (MWh) for exceptional episodes.

“We will resist strongly, decisively. It seems to us that for this exile it is better to do nothing at all, ”Ribera said in his speech at the control meeting of the government, which took place on Tuesday in the Senate.

The price proposed by the Commission, which Spain rejects, contrasts with the limit set by the so-called “Iberian Mechanism” in Spain and Portugal, which limits the price of gas for electricity generation from 40 to 70 euros from 15 June. euro/MWh for twelve months.

After his appearance in the corridors of the Senate, Ribera reiterated his criticism of the Commission, assuring that the proposal “doesn’t solve anything” and was not in line with what member states had asked for.

“I don’t think it can solve the situation at all,” Ribera said, while warning of the possibility that the measure would “raise” an increase in speculation and the selling price.

Proposal to limit the “excessive price level”

The European Commission’s legal proposal, which will be discussed this Thursday at an extraordinary Energy Council in Brussels, is not aimed at setting an “artificially low” price, according to European Energy Commissioner Kadri Simson, but at preventing “excessive price levels”.

If approved, the cap will apply from January 1, 2023, provided monthly futures prices exceed €275/MWh on the TTF benchmark market, and provided that this increase shows a divergence of more than €58. reference price for liquefied natural gas (LNG) for ten consecutive days.

As for Thursday’s meeting to discuss gas restrictions, Ribera believes the Commission will face “strong resistance from the vast majority of member states.”

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org